Lawmakers Urge for Investigation into $7.2 Billion TRANSCOM Contract

August 5, 2020

Two member of Congress have come forward to voice their concerns about the U.S. Transportation Command’s (TRANSCOM) recently awarded contract of $7.2 billion to manage service members’ household goods moves, Military Times reports.

Senator Thom Tillis of North Carolina sent a letter to Ellen Lord, under secretary of defense for acquisition and sustainment,“to conduct a thorough review of all concerns as our service members and the American taxpayer deserve our due diligence.”

In a letter to the House Armed Services Committee, Representative David B. McKinley of West Virginia said that TRANSCOM’s “decision to accept a higher priced bid, from a subsidiary of a foreign-owned company with a questionable track record, is deeply troubling.”

Furthermore, the lawmakers voiced concern that the winning bid, American Roll On Roll Off Carrier Group of Parsippany, N.J., was $2 billion higher over a nine-year-period compared to bidders deemed as being technically qualified.

Two unsuccessful bidders filed protest with the Government Accountability Office (GAO) in July outlining issues with TRANSCOM’s decision. Two weeks later the contract was re-awarded to ARC.

“Instead of fully vetting each allegation, TRANSCOM deemed this a clerical error. Failure to accurately disclose ownership and a criminal history makes a bidder ineligible for the award,” said McKinley.

Photo by Sara Morris/Joint Forces Headquarters, Washington National Guard

August 5, 2020

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